Exploring Put Options for FirstEnergy Corp: A Strategic Alternative for Investors
For investors eyeing FirstEnergy Corp (Symbol: FE) stock but hesitant about the current market price of $41.41 per share, selling put options might present a worthwhile strategy. A notable option available is the January 2026 put with a strike price of $33, which currently carries a bid of 95 cents. This premium translates to a 2.9% return based on the $33 commitment, equating to an annualized rate of 2.4%—a concept referred to as YieldBoost by Stock Options Channel.
It’s important to note that selling a put does not allow investors to benefit from FirstEnergy’s upside potential in the same way that holding shares would. The seller of a put will end up acquiring shares only if the contract is exercised, which occurs only when it is more advantageous compared to the market price. To put it in perspective, unless FirstEnergy’s stock drops 20.4% and the contract is exercised (resulting in a cost basis of $32.05 per share after deducting the 95-cent premium), the seller’s gain will solely come from the collected premium, yielding a 2.4% annualized return.
Below is a chart illustrating the trading history of FirstEnergy Corp over the past twelve months, highlighting the position of the $33 strike relative to this history:
This chart, along with the historical volatility of the stock, can help investors assess whether selling the January 2026 put at the $33 strike for a 2.4% annualized return is a savvy move considering the associated risks. The calculated trailing twelve-month volatility for FirstEnergy, based on the last 250 trading day closing prices and the current price of $41.41, stands at 16%. For additional put option ideas with varying expirations, check the FE Stock Options page on StockOptionsChannel.com.
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Also see:
- Railroads Dividend Stocks
- WSTL market cap history
- Top Ten Hedge Funds Holding DAC
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
